Secured Investment Secured Future: SIP

In our daily routine, we use many things and need the security tool to protect them. Whether it be a mobile phone in which we put password, the almirah which is locked with a key, our jewellery which we keep in lockers or important documents saved on the PC which is secured with a password. Why do we supposed to use too much security? Just to get protection, right? But have you ever thought of securing your investments? SIP(Systematic Investment Plan) can help you secure the same.

Investments are made with our hard-earned monies, then how can we leave it unsecured? We must think to fasten them because it has the power of changing our future. It is the only source to create a fortune. We all know the power of money very well. Having money in hand makes us feel secure because, in the case of uncertainty, it acts as the companion in trying times. So, the investment made with money cannot be kept unsecured at all.

An investment is considered safe when it is put into such projects that ensure better scope and returns. So, just putting the money into the investment plan is not enough, you must find the best plan for yourself to invest in, so as to be assured of protection. For every investor, at the end of the day, the goals are simple: safety and security only. One can compromise on the amount of interest but losing the whole corpus of money is never acceptable.

SIP plans can help you the best way to get rid of all insecurity. Systematic Investment Plan is a way of investing in the mutual fund programme, whereby we can invest by paying the amount on a periodic basis. It provides the following benefits to the investor:

• Makes one a disciplined investor: When an investor makes the payment for investment on periodic basis, he is held with the habit of saving regularly, which makes him a disciplined investor.
• Expertise: The mutual funds SIP schemes are prepared by a highly experienced team of members which assure the schemes to be reliant. With no doubts in mind one can opt for the investment plans.
• Rupee Cost Averaging: The investment in case of SIP is made on different dates. As the NAV keeps on changing, the unit price of the scheme is different for every investment. Hence, when the overall cost of investment is computed, it is comparatively less.
• Assures High Returns: The schemes of mutual fund investment are designed in a way which provide maximum returns and benefits to the investor.
• Secured Investment: All the mutual fund programmes are run by SEBI registered asset management companies. This assures that the corporates are trustworthy, and the fund we put in is held securely by them.

Hence, all the goals that an investor desire to achieve are provided by the SIP programme. When our investment shall be safeguarded, it will automatically lead to a safe future, as we invest to make a better future for us.

So, secure your future and invest in the mutual fund SIP schemes online using the My SIP Online, where you shall be provided with every help that could lead you to take the best investment decision.

SIP - ONE INVESTMENT PLAN WITH MANY BENEFITS:

Every person in today’s world want to earn some extra benefits. Sticking on just one source of income is not in practice now and of course, cannot be because of the hike in inflation rates. For earning more one need to get indulged in more than one source so as to get some extra earnings.
All of us are very much aware about the the concept of investment as well as the yields associated with it. Yes, we want to get maximum return on our investment with limited or no risk. Here comes the need to plan a proper investment so that we could get what we want.

INVESTMENT PLAN - DO YOU KNOW WHAT IT IS?
Planning is, thinking in advance about future scenario and then coming up with a strategy as to how we can achieve our goals in the future.
Accordingly, Investment Plan is a strategy of making investment, which is made for the future to earn maximum profits.

CHOSING A BETTER PLAN!
Which is a better plan?
The answer to this question cannot be in one or two words. This is because every one plans with some different objectives. For some, good returns with no risk is the main objective while for others the aim can be to earn high yield only.
But, in general sense, if we talk about the benefits of the investment plan, a better plan can be proved to be the one and only, which

• provides for comparatively high returns
• are less risky
• are safe and secured 

Why SIP (Systematic investment plan)?
Anything, which is done in a systematic way is proved to be efficient and effective. Similarly, the very concept of SIP is to provide for an effective and efficient plan of investment to the investor.

SIP,

• where one can start investment with a lesser amount of Rs 500 only per month.
• Periodically, a certain amount is debited from the bank account of the customer which is put into an investment project.
• Investor is benefited with the compounding power of the scheme.
• It also provides for cost benefit due to the rupee cost averaging concept associated with it.
• Early the investment more shall be the benefit it will fetch due to the compounding power.

Major benefits of SIP

Rupee cost averaging - We cannot predict the movement of market that whether it will go up or down. Even, the professional cannot provide us with the future fluctuation rates because they are very uncertain and depends on many different factors.
Rupee cost averaging here provides us to out of the guessing game of trying to buy less and sell high.
We can understand this concept with an example,
Suppose you invest Rs.1000 every month and NAV(cost) of the unit is constantly changing (increase or decrease), hence at the end of the year on calculating we will come to know that on an average basis we have invested less and earned higher as compared to that in case of lump sum, where the whole investment is made at one time only.
Accordingly, under the SIP scheme advantage of market dips can be taken.
Under this, the money shall buy more share (units) when price reduces and less when price increases and on an average shall provide for lesser cost.

Power of compounding - Compounding concept of finance refers to earning interest on interest. Under this, the investor earns interest on the principal amount and an additional interest on the interest so accrued on the principal amount.
An example for this can be , say you invest Rs 10000 at a simple interest of 10% for 10yrs. After 10yrs you will earn rs.20000.
On the contrary if you invest Rs. 10000 at 10% compound interest for 10yrs then after 10yrs you will earn Rs.27070 which is higher than simple interest.
SIP also provides for this compounding benefit as the interest earned on SIP is compound interest only.
To get benefited with the compounding scheme the investment shall be made for a longer period of time. Longer the period of investment, higher the amount of interest.

Less burden on the investor - one more important benefit of investing in SIP is its minimum capital investment limit.
This means in SIP an investment can be made by starting with an amount of just Rs.500 or Rs.1000 pm and this is really helpful for the less income groups.
So, we are not bound with any minimum capital requirement under this scheme.

Hassle free process - SIP does not require a regular attention of the investor. Once you are enrolled under the scheme, you can allow your bank to debit the amount automatically from your account and make investment.

This is how SIP can be a best investment plan for you. So just don't think more and start investing now via My SIP Online to earn a bundle of benefits.

Get a better insight for organizing your investments

Have you ever seen a construction site? It is amazing to see how a sky-scraping building is constructed by placing the bricks in the right places. “Take care of small things and big things will automatically fall in place”, is a traditional saying which emphasizes on streamlining the tasks which appear to be small but produce a greater impact over the time. For example, for attaining a building, according to the plan, each brick has to placed accurately.

In the same way, investing is an activity that requires consistency and patience to attain desired gains. Mutual funds have been serving as one of the most secured ways of investing in stock market, bonds, securities, tax savers, etc. The clients can fulfill their needs with the help of investing in any of these instruments. Along with providing varied avenues of investing, mutual fund provides two methods through which the clients can place their money in any of the selected scheme viz, Lump Sum and SIP (Systematic Investment Plan).

What is SIP?

It is a method of depositing small amounts on a regular basis in any of the schemes selected by the clients. SIP was initially introduced to make the investment process easier as numerous clients are willing to sacrifice a huge sum at a time. This mechanism not only waves off the burden from the client’s shoulders but also makes it easier for him/her to invest more frequently. By investing as low as Rs. 500 through SIP plans clients can enjoy to accumulate a huge corpus over a prolonged period.
Top five SIP plans for 2016

There are a lot of mutual fund companies that provide innumerable schemes to the clients for investment. According to client’s risk-appetite and investment needs the clients can choose any of the schemes to invest their hard-earned money. The mutual fund experts mark some funds as the top SIP plans on the basis of the report of past 5-year performance, NAV index, Portfolio assessment, and Profit/Loss analysis report. There are following plans which have been rated to be the top five plans of 2016 in India:

1. DSP BlackRock Micro Cap Fund: It is an equity-oriented scheme which invests in small-cap and mid-cap companies. This scheme intends to apprehend the profits based on long-term growth potential of the newly established companies. Every small-cap and mid-cap company is in the initial years of business and consists the capability to make progress. DSP BlackRock Micro Cap Fund was initially launched in the year 2007 and has been able to mark its presence in one of the five top performing SIP funds. The AUM of the fund is Rs. 2,004.13 Cr which shows the popularity of the fund. The various options available under this top performing mutual fund in India are Growth, Dividend, Payout, Reinvest. There is an exit load of 1% for the investors who withdraw their money before the period of 12 months. 
2. Tata Balanced Fund: A balanced fund is one of the funds lying under the hybrid category whose major investments are in equity and relatively less portion is being invested in money market instruments. Equity investments provide the much-required growth of funds through capital appreciation while on the other hand, money market instruments facilitate fixed income benefits. Tata Balanced Fund is one the top performing funds under the hybrid funds category. The scheme is an open-ended fund and has 65:35 ratio of equity and debt respectively.         
3. ICICI Prudent Value Discovery Fund: This scheme is an open-ended diversified equity fund. Money invested through this fund is wisely diversified across various sectors of out economy like pharmaceuticals, banking, IT, etc. The fund manager contains a list of all those companies that are fundamentally strong and have ethical approach along with offering affordable stock prices. Hence, extending the benefits of capital appreciation over a long period.
4. Axis Long Term Equity Fund: It is also categorized under ELSS category. It has a three year lock in period and was started in the year 2009. There is no entry and exit load and it is an open-ended scheme. The scheme invests in sectors like banking, finance, consumer durable, etc. In a short span of seven years Axis Long Term Equity Fund has been able to make an impression among the investors and attain a position among the five most preferred SIP funds. 
5. L&T India Value Fund: The scheme aims at generating long-term capital appreciation by providing a diversified portfolio of equity and equity-related securities. The Scheme also invests in Foreign Securities in international markets along with the advantage of providing growth and dividend options.

Therefore, the clients should adopt SIP as their mode of investment which will undoubtedly help in accumulating wealth penny by penny over a long period of time.